S. Jersey MD accused of insurance fraud

Wednesday, July 15, 2009

Chris Megerian

STAR-LEDGER STAFF

An Atlantic County surgeon and his office manager have been
charged with defrauding Medicaid, Medicare and private
insurance companies out of more than $8.5 million, state
officials announced yesterday.

Khashayar Salartash, 42, of Linwood and his office manager,
Farah Iranipour Houtan, 51, of Egg Harbor Township,
allegedly conducted the fraud between August 2002 and June
2007 while working at Salartash's treatment center, The
Center for Lymphatic Disorders LLC.

State officials said Salartash and Houtan fraudulently
received $593,363 from Medicaid, $4.7 million from Medicare
and $3.3 million from private carriers after improperly
billing for services.

"It's outrageous that a doctor would fraudulently
take millions of dollars from programs that pay for medical
care for the elderly and those who can't afford health
insurance," Attorney General Anne Milgram said in a
statement.

The eight-count indictment, issued Monday by a state grand
jury, includes charges of conspiracy, health care claims
fraud, Medicaid fraud and misconduct by a corporate official.

State officials said the defendants claimed Salartash had
personally provided or supervised medical services, when in
fact they were separately performed by a therapist or nurse.
They also allegedly billed for surgery when only therapy
services were provided.

Salartash's lawyer, Jerome Ballarotto, said his client
is not guilty of the charges.

"It's a travesty," Ballarotto said. "He
did his best to operate a center for lymphatic disorders, to
help people that other doctors wouldn't go near."

State officials said Salartash opened his Center for
Lymphatic Disorders in August 2002 to treat patients with
lymphedema, a disorder that causes fluid accumulation and
swelling of the arms and legs. Additional offices were
opened in Atlantic City, Manahawkin, Haddon Heights and
Galloway Township.

A second lawyer for Salartash, Lee Goldsmith, said all five
offices have closed.

Goldsmith said Salartash is also involved in litigation with Horizon Blue Cross Blue Shield of New Jersey over whether he used the appropriate codes when billing services....